Tata Power plans Rs 1.25 trillion investment between FY26 and FY30

Raises FY25 capital expenditure by 72% compared to FY24

Tata Power is planning to invest around Rs 1.25 trillion between the next financial year (FY26) and FY30 in order to double its operational capacity to 32 gigawatts (Gw) from 15.6 Gw now, a senior company official said on Friday.

 

This is in addition to the Rs 21,000 crore lined up for FY25, up 72 per cent from Rs 12,184 crore in FY24. Out of the total capex of Rs 1.46 trillion lined up between FY25 and FY30 to be used for generation, transmission, and distribution, around 60 per cent will be spent on renewables. This is in line with the company’s vision of achieving 70 per cent green energy power generation by 2030, and 100 per cent by 2045. 

 

The company’s renewable capacity is expected to touch 23 Gw by FY30, from 6.7 Gw in FY24. The official indicated that the company may also look at public-private partnerships in nuclear energy once the government gives the go-ahead for that. 

 

 

The company is targeting a 1.6-fold growth in revenue to Rs 100,000 crore, a 2.4-fold growth in Ebitda (earnings before interest, taxes, depreciation and amortisation) to Rs 30,000 crore, and a 2.5-fold growth in profit after tax (PAT) to Rs 10,000 crore by FY30, said Praveer Sinha, chief executive officer (CEO) and managing director (MD) of the company.

 

Sinha was addressing the media at Tata Power's newly built 4.3 Gw solar module and cell manufacturing facility in Gangaikondan near Tirunelveli, Tamil Nadu. In FY24, the company’s revenue was seen at Rs 61,542 crore, Ebitda at Rs 12,701 crore, and net profit at Rs 4,109 crore, he said.

 

As per the road map, the company's transmission line reach is expected to increase from 4,633 circuit kilometres (Ckm) to 10,500 Ckm. In distribution, Tata Power aims to reach a customer base of 40 million from 12.5 million now, he said.

 

Sinha said the Tirunelveli unit, built with an investment of Rs 4,300 crore through its step-down subsidiary TP Solar Ltd, will largely cater to the domestic market only. "This plant will be catering to the Indian market only. This country offers huge opportunity. Whatever we are producing over here for the next 12 to 16 months is already tied up (with projects)," Sinha said, adding that the company has the option to add another 4 Gw of cell and module production capacity at the Tirunelveli unit.

 

The modules produced at the facility are part of the Approved List of Models and Manufacturers (ALMM) and are eligible for government schemes like the PM Surya Ghar Yojana. The company is confident that solar cells will soon be added to the ALMM list, giving a further push to the sector. The plant will also strengthen Tata Power's position in rooftop and utility-scale solar energy segments. Spread over an area of 317 acres, the unit has a capacity of 4.3 Gw cells and 4.3 Gw modules.

 

"This is the largest single-location cell and module manufacturing facility in India," Sinha said.

 

India has set an ambitious target of achieving 500 Gw of renewable energy capacity by 2030, out of which it has only achieved 203 Gw till October 2024. "We have to add 300 Gw more to achieve the target. Tata Power's plans are in line with that," he said.